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Digital asset investment products experienced multi-million outflows last week, driven by reduced expectations of a U.S. interest rate cut following stronger economic data. 
The crypto market is seemingly gripped by widespread negative sentiment “across various providers and regions,” as digital asset investment products saw outflows totaling $305 million last week, according to <a href="https://crypto.news/tag/coinshares/" target="_blank" rel="noreferrer noopener">CoinShares</a>. 
In a Sept. 2 <a href="https://blog.coinshares.com/volume-198-digital-asset-fund-flows-weekly-report-103ff715bd07" target="_blank" rel="">blog post</a>, CoinShares head of research James Butterfill said the outflows appear to have been driven by stronger-than-expected U.S. economic data, which has reduced the likelihood of a 50-basis point interest rate cut by the Federal Reserve. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “We continue to expect the asset class to become increasingly sensitive to interest rate expectations as the FED gets closer to a pivot.” 
 CoinShares head of research James Butterfill 
</blockquote> 
The U.S. led the outflows, with $318 million withdrawn, while Germany and Sweden also saw outflows of $7.3 million and $4.3 million, respectively, data shows. In contrast, Switzerland and Canada recorded minor inflows of $5.5 million and $13 million. 
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 <img loading="lazy" decoding="async" width="828" height="832" src="https://crypto.news/app/uploads/2024/09/iojfiejwfweesd.png" alt="Widespread negative crypto sentiment 'evident' across regions, CoinShares says - 23"> 
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 <figcaption class="wp-element-caption">
 Weekly crypto asset flows | Source: <a href="https://blog.coinshares.com/volume-198-digital-asset-fund-flows-weekly-report-103ff715bd07" target="_blank" rel="">CoinShares</a>
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Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>) bore the brunt of the outflows, shedding nearly $320 million. However, short Bitcoin investment products saw their largest inflows since March, attracting $4.4 million for the second consecutive week. Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) also faced outflows of $5.7 million, with trading volumes stagnating at just 15% of the levels seen during the U.S. ETF launch week. 
Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>) defied the overall trend, attracting $7.6 million in inflows. Butterfill noted that blockchain equities also experienced positive momentum, with $11 million flowing in, particularly into investment products focused on Bitcoin miners. 
As crypto.news <a href="https://crypto.news/kaiko-heres-why-bitcoin-price-dropped-in-august/" target="_blank" rel="noreferrer noopener">reported</a> earlier, Bitcoin dropped by almost 10% in August, while the Nasdaq 100 index rose by over 2% and gold peaked at an all-time high of $2,530. The performance occurred despite the U.S. dollar index plunging to $100.1, down by over 6% from its highest point this year. Analysts at French blockchain firm Kaiko suggested that the likely reason for the sell-off was that investors are concerned about the falling liquidity in the Bitcoin market and rising worries that governments will start selling their holdings. 
 Read more: <a href="https://crypto.news/bukele-on-bitcoin-it-gave-us-branding-investment-and-tourism/"> Bukele on Bitcoin: ‘It gave us branding, investment, and tourism’ </a>

Widespread negative crypto sentiment ‘evident’ across regions, CoinShares says

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